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Kohl’s testing Vera Wang early?

The Channel Checkers are reporting that Kohl’s has started selling Vera Wang merchandise earlier than the advertised street date of September 9:

We have been surprised so far in our survey. 12 of the 25 (48%) stores we have called this week have told us that they already have the Vera Wang line and are selling it. We were told there is a Vera Wang perfume on sale at Kohl’s now too. Many of the stores that have the line appear to be in the Pacific Northwest and the Southeast. Stores in Washington and Oregon and South Carolina and Georgia provided the bulk of our positive responses. We called one store in New York City and they claim to be stocking the line already as well.

Read more at their site under: Vera Wang Line Sneaking Into Kohl’s Early.

In the past, Kohl’s generally rolls out their national branch launches in highly coordinated affairs, unveiling the new line in all of the markets on the same day. We saw this in 2005 with the launch of Candies, as an exclusive Kohl’s brand, and we’ve seen it through the past few years of growth in the Chaps brand. These launches, from new fixturing to promotions to actual merchandise are all tied in to hit the stores on the same day, with major national ad campaigns behind them.

There are exceptions to this: Casa Cristina rolled out in the Southwest in Q4 2006 prior to a national launch in early 2007. More contemporary lines, such as Elle and Stamp 10, have seen staggered growth after successful launches. The retailer has also tested new products and concepts on smaller levels before rolling out nationally - case in point is the recent addition of a private-label tuxedo line to the menswear departments of their stores in a slow rollout.

It does surprise me to hear that Kohl’s may have let this merchandise out early. It seems to be against their past behavior. Is Kohl’s really selling Vera Wang merchandise early in an attempt to reach out to some test markets? This is the largest brand launch in the retailer’s history - so perhaps it is time to do things differently than they have in the past.

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Retail roundup - Q1 results, Kohls

The first batch of retail Q1 results are in and I’m going to start touching on some of them.

Kohl’s came out swinging with some extremely strong numbers for the quarter: 16% increase in sales, 6.9% increase in comp store sales, and quarterly profits up 34%. President Kevin Mansell says that there were strong sales in the contemporary and updated lifestyle classifications of women’s apparel, with strong response to the introduction of Chaps brand for Women, by Polo Ralph Lauren Corp, and the private AB Studio brand. Across the store, Chaps for Boys and Tony Hawk for Young Mens & Boys also saw positive response.

From marketwatch.com’s coverage of the conference call:

In response to an analyst’s question, Chairman and Chief Executive Larry Montgomery said Kohl’s has had only limited experience competing against a new, off-mall store format that J.C. Penney is beginning to roll out more rapidly this year. While Kohl’s stores have typically taken a short-term sales hit when a new Penney store opens nearby, they soon recover to normal levels, he said.

“I would suggest that probably when we open up, we probably hit them harder than when they open up,” Montgomery said.

Jeremy MacNealy at the motleyfool thinks very highly of Kohl’s stock right now, noting:

As a result of new brand and marketing initiatives to draw first-time customers to the stores, transactions for the quarter were up 4.8% compared to the same period a year ago. On top of this, transaction value rose 2.1% year over year, leading to overall comparable same-store growth of 6.9%.

He goes on to say:

Prospective investors will want to inspect the company’s free cash flow generation once the figures are made available in its 10-Q filing. But from just an earnings perspective, at roughly 18 times projected current-year earnings, this stock is reasonably priced, given the kind of growth rates we are currently witnessing. The market may be soaking sweat with concern, but Kohl’s shareholders have good reason to keep smiling.

More in his article, Kohl’s is Cruising.

Full SEC Form 8-k filing here, via Yahoo.

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What I Do At Work - April

More photos from work:

Top to bottom: Misses’ Chaps, Misses’ Daisy Fuentes, Juniors’ Candies, Men’s Chaps, Young Mens’ Tony Hawk, Boys’ Chaps and Women’s Apt. 9 & Daisy Fuentes.

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What I Do At Work

In case you are wondering what I do for a living, I make mannequins look pretty (among other things). I am working on putting my portfolio online, but for now here are some of my recent mannequins:

Top to bottom: Chaps for Misses, Candies for Juniors, (Tony) Hawk Clothing for Young Men and Chaps for Men.

(The mannequins in the first photo are new and they have nipples, which none of my other female mannequins do not have. Nipples are not uncommon with mannequins, as most department store mannequins have them. The reason this is worth noting is because the mannequin on the right is wearing a very thin blouse that is apparently see-through with the flash reflection. My already creepy photos just got even creepier!)

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